Not sure on their debt service, but the 6% cap rate assumes a 4.7% 30 yr amm rate and 3% vacancy loss.

As a result, even a minor misstep by the buyer/tenant could result in a major and inequitable loss of equity.So why do lease-options fall within the definition of an executory contract?

What a terrible loss from the condo, hopefully you can make up for it in the future with a successful investing career!

I'm returning to REI part time after major losses when the bubble burst in 07-08. 

Maybe there's some funny math with carry-over losses due to depreciation exceeding returns, and later superior after-tax earnings if we assume inflation, but I just don't like the idea of my investment money suddenly only going half as far.So, how can this other financing with higher interest rates work?  

Just eat the loss and take care of your good tenants.

All you need to find is a $10K mistake in your renovation numbers and your margin is gone or you may end up selling for a loss

This could save your business from catastrophic loss should something bad happen.You can check out their website, or search YouTube for Clint Coons and watch some of his videos to see what they're all about.

FYI: I'm a conservative investor and will not risk the loss of my principal. 

When a borrower has a history of receiving rental income from the subject property since the previous tax year, the borrower must provide most recent Federal Tax Returns, including IRS Schedule E, covering the previous two (2) yearsCalculating Effective Rental Income � Any net rental income from the subject property must be added to the borrower’s qualifying gross monthly income after averaging the reported net rental income/loss reflected on Schedule E of the tax returns.� When calculating the average net rental income/loss, any depreciation, mortgage interest, taxes, insurance, and HOA dues reflected for the subject property may be added back to the net income/loss.� If the borrower has owned the subject property for less than 2 years, rental income/loss must be annualized for the length of time the property has been owned.